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WorksheetsAnalisis Selisih
Total questions: 64
Worksheet time: 3hrs 30mins
A total direct materials variance is analyzed in terms of
price and usage variances.
buy and sell variances.
quantity and quality variances.
tight and loose variances.
The formula for the direct materials quantity variance is
(AP × SQ) – (SP × SQ)
(AP × AQ) – (SP × AQ)
(SP × AQ) – (SP × SQ)
(AP × AQ) – (SP × SQ)
What does a favourable variable overhead spending variance indicate?
Actual variable overhead rate is higher than standard variable overhead rate
Actual variable overhead rate is lower than standard variable overhead rate
Actual variable overhead is lower than standard variable overhead
Actual variable overhead is higher than standard variable overhead
Which variable overhead variance is more useful in controlling variable overhead costs, and why?
Efficiency variance, because it reflects how efficient our activity base is
Efficiency variance, because it measures the standard hours based on actual output
Spending variance, because it measures the difference between actual and standard direct labour hours
Spending variance, because it adjusts for actual quantity of cost driver and reflects how efficiently we have been using overheads
Given that:
VOH spending variance = 960F
VOH efficiency variance = 600F
Fixed OH budget variance = 2,100F
Fixed OH volume variance = 2,600U,
What would be in the journal entry to record these variances?
Debit VOH spending variance 960
Debit Fixed OH volume variance 2,600
Credit VOH efficiency variance 600
Credit Fixed OH budget variance 2,100
Given that:
VOH spending variance = 960F
VOH efficiency variance = 600F
Fixed OH budget variance = 2,100F
Fixed OH volume variance = 2,600U,
How much manufacturing overhead is under/overapplied?
$1,060 Underapplied
$1,060 Overapplied
$360 Underapplied
$360 Overapplied
Normal standards:
(a)allow for rest periods, machine breakdowns, and setup time.
(b)represent levels of performance under perfect operating conditions.
(c)are rarely used because managers believe they lower workforce morale.
(d)are more likely than ideal standards to result in unethical practices.
Each of the following formulas is correct except:
(a)Labor price variance = (Actual hours × Actual rate) − (Actual hours × Standard rate).
(b)Total overhead variance = Actual overhead − Overhead applied.
(c)Materials price variance = (Actual quantity × Actual price) − (Standard quantity × Standard price).
(d)Labor quantity variance = (Actual hours × Standard rate) − (Standard hours × Standard rate).
In producing product AA, 6,300 pounds of direct materials were used at a cost of $1.10 per pound. The standard was 6,000 pounds at $1.00 per pound. The direct materials quantity variance is:
(a)$330 unfavorable.
(b)$300 unfavorable.
(c)$600 unfavorable.
(d)$630 unfavorable.
In producing product ZZ, 14,800 direct labor hours were used at a rate of $8.20 per hour. The standard was 15,000 hours at $8.00 per hour. Based on these data, the direct labor:
(a)quantity variance is $1,600 favorable.
(b)quantity variance is $1,600 unfavorable.
(c)price variance is $3,000 favorable.
(d)price variance is $3,000 unfavorable.
The formula for computing the total overhead variance is:
(a)actual overhead less overhead applied.
(b)overhead budgeted less overhead applied.
(c)actual overhead less overhead budgeted.
(d)No correct answer is given.
In using variance reports to evaluate cost control, management normally looks into:
(a)all variances.
(b)favorable variances only.
(c)unfavorable variances only.
(d)both favorable and unfavorable variances that exceed a predetermined quantitative measure such as a percentage or dollar amount.
The setting of standards is:
(a)a managerial accounting decision.
(b)a management decision.
(c)a worker decision.
(d)preferably set at the ideal level of performance.
Which of the following is incorrect about a standard cost accounting system?
(a)It is applicable to job order costing.
(b)It is applicable to process costing.
(c)It reports only favorable variances.
(d)It keeps separate accounts for each variance.
The formula to compute the overhead volume variance is:
(a)Fixed overhead rate × (Standard hours − Actual hours).
(b)Fixed overhead rate × (Normal capacity hours − Actual hours).
(c)Fixed overhead rate × (Normal capacity hours − Standard hours allowed).
(d)(Variable overhead rate + Fixed overhead rate) × (Normal capacity hours − Standard hours allowed).
Last year, a department's standard costing system reported an unfavorable variable overhead spending variance and an unfavorable volume variance. The denominator activity level selected for allocating overhead to the product was based on 80% of capacity. If 100% of capacity had been selected instead as the denominator level, how would the reported unfavorable spending and volume variances be affected?
Spending variance increased
Volume variance unchanged
Spending variance increase
Volume variance increased
Spending variance unchanged
Volume variance increased
Spending variance unchaged
Volume variance unchanged
If the price a company paid for overhead items, such as utilities, decreased during the year, the company would probably report a(n):
favorable efficiency variance.
favorable spending variance.
unfavorable efficiency variance
unfavorable spending variance.
Sesareo Tile Installation Corporation measures its activity in terms of square feet of tile installed. Last month, the budgeted level of activity was 1,130 square feet and the actual level of activity was 1,180 square feet. The company's owner budgets for supply costs, a variable overhead cost, at $2.60 per square foot. The actual supply cost last month was $2,130. In the company's flexible budget performance report for last month, what would have been the variance for supply costs?
$808 F
$938 F
$90 U
$130 U
Eng Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of activity was 16,800 skeins and the actual level of activity was 16,600 skeins. The company's owner budgets for dye costs, a variable overhead cost, at $0.44 per skein. The actual dye cost last month was $7,690. In the company's flexible budget performance report for last month, what would have been the variance for dye costs?
$298 U
$93 F
$88 F
$386 U
At Cady Company, maintenance is a variable cost that varies directly with machine-hours. The performance report for June showed that actual maintenance costs totaled $9,600 and that the associated spending variance was $400 unfavorable. If 8,000 machine-hours were actually worked during June, the budgeted maintenance cost per machine-hour was
$1.30
$1.25
$1.20
$1.15
Masek Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:
Budgeted level of activity 2,000 MHs
Actual level of activity 2,400 MHs
Cost formula for variable manufacturing overhead cost $5.90 per MH
Budgeted fixed manufacturing overhead cost $50,000
Actual total variable manufacturing overhead $14,880
Actual total fixed manufacturing overhead $49,000
What was the fixed overhead budget variance for the month?
$2,360 unfavorable
$1,000 unfavorable
$2,360 favorable
$1,000 favorable
Ferro Enterprises, Inc., uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours. During the month of September, the company applied $52,000 in fixed manufacturing overhead cost to units of product. At the end of the month, manufacturing overhead was overapplied by $3,000. If there was no volume variance in September, then the budgeted fixed manufacturing overhead cost for the month was:
$49,000
$52,000
$55,000
$58,000
At the end of April, the Manufacturing Overhead account of Askey Company showed a debit balance of $6,000 after overhead had been applied for the month. If the actual total manufacturing overhead cost incurred in April was $108,600, and if 8,550 units were produced in April, then the total (combined) rate for applying manufacturing overhead cost per unit is:
$13.40
$13.00
$12.80
$12.00
Diseth Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company bases its predetermined overhead rate on 5,300 machine-hours. The company's total budgeted fixed manufacturing overhead is $12,720. In the most recent month, the total actual fixed manufacturing overhead was $12,370. The company actually worked 5,350 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,540 machine-hours. What was the overall fixed overhead volume variance for the month?
$350 favorable
$120 favorable
$120 unfavorable
$576 favorable
Sulema, Inc. repairs and refinishes antique furniture. Manufacturing overhead at Sulema is applied to production on the basis of standard direct labor-hours.
Which overhead variance(s) at Sulema would be favorably affected if the actual direct labor-hours incurred are less than the standard direct labor-hours allowed for output?
variable overhead spending variance
variable overhead efficiency variance
fixed overhead budget variance
fixed overhead volume variance
Sulema, Inc. repairs and refinishes antique furniture. Manufacturing overhead at Sulema is applied to production on the basis of standard direct labor-hours.
Which overhead variance(s) at Sulema would be unfavorably affected if the cost of solvents used to strip the old paint and varnish from the furniture unexpectedly doubles in price?
variable overhead spending variance
variable overhead efficiency variance
fixed overhead budget variance
fixed overhead volume variance
What is standard cost?
The average unit cost of product produced by other companies.
The average unit cost of product produced in the current period.
The budgeted unit cost of product produced in a particular period.
The average unit cost of product produced in the previous period.
The estimated expenses of budgeted production refers to the:
Production cost
Budgeted cost
Standard cost
Actual cost
A document that records the standard cost of a single unit of product is known as
Materials cost card
Standard cost card
Product expense card
A formula for computing direct materials price variance is
Actual quantity purchased × (Actual rate - Standard rate)
Standard quantity purchased × (Actual rate + Standard rate)
Actual quantity purchased × (Actual rate + Standard rate)
Standard quantity purchased × (Actual rate - Standard rate)
A favorable direct materials price variance occurs when:
actual rate of direct materials is equal to standard rate of direct materials
actual rate of direct materials is less than standard rate of direct materials
actual rate of direct materials is higher than standard rate of direct materials
actual rate of direct materials is less than previous year's rate of direct materials
The Tee Shirt Enterprise uses a standard costing system. The company established the following direct materials cost standards for one unit of T-shirt:
Standard Quantity - 4 grams
Standard Rate - RM5/gram
Standard Cost - RM20
During the month of April, Tee Shirt Enterprise purchased 25,000 grams of materials at a cost of RM128,750 and used 10,250 grams of materials to produce 2,500 units of T-shirt. The direct materials price variance for January was:
RM3,700 Unfavorable
RM3,700 Favorable
RM3,750 Unfavorable
RM3,750 Favorable
SOS Manufacturing uses a standard costing system to produce . The following direct materials cost standards for one unit of Tomato Sauce:
Standard Quantity - 4 grams
Standard Rate - RM5/gram
Standard Cost - RM20
Last month, SOS Manufacturing purchased 40,000 grams of direct materials at a cost of RM199,200 and produced 5,000 units of product X Tomato Sauce using 19,750 grams of direct materials. Calculate the direct materials quantity variance for the last month.
800 Favorable
1,250 Unfavorable
800 Unfavorable
1,250 Favorable
Hand Care Manufacturer used the following direct labor cost standards for one unit of hand sanitizer:
Standard hours: 1.5 hours
Standard rate: RM20 / hour
Standard cost: RM30 (1.5 hours @ RM20 / hour)
Last April, the company recorded 20,000 direct labor hours and 12,500 units of hand sanitizer were produced. The total wages of direct labor in April were RM405,000. Calculate the direct labor rate variance for April.
RM30,000 Unfavorable
RM25,000 Unfavorable
RM30,000 Favorable
RM25,000 Favorable
Which of the following cannot be a reason of unfavorable direct materials price variance?
Excellent employee training program
Inefficient standard setting
Ineffective purchasing agent
Sudden rise price of materials
Which of the following cannot be a reason of unfavorable direct materials quantity variance?
Unmotivated workers
Lack of supervision
Frequent power failures
Uneconomical order size
If:
the standard direct labor rate was RM10 per hour;
the direct labor rate variance amounted to RM450 favorable; and
the actual direct labor cost amounted to RM39,550.
The actual direct labor hours worked were:
3,955 hours
4,500 hours
3,910 hours
4,000 hours
The formula for the labour rate variance is
LRV=LRV + LEV
LRV=(AR x AH)-(SR x AH)
LRV=(AR x SR)-(SR x AH)
Which of the following statements is false?
A standard cost is more accurate than a budgeted cost.
A standard is a unit amount.
In concept, standards and budgets are essentially the same.
The standard cost of a product is equivalent to the budgeted cost per unit of product.
Using standard costs
makes employees less “cost-conscious.”
provides a basis for evaluating cost control.
makes management by exception more difficult.
increases clerical costs.
Ideal standards
are rigorous but attainable.
are the standards generally used in a master budget.
reflect optimal performance under perfect operating conditions.
will always motivate employees to achieve the maximum output.
Hofburg’s standard quantities for 1 unit of product include 2 pounds of materials and 1.5 labor hours. The standard rates are $2 per pound and $7 per hour. The standard overhead rate is $8 per direct labor hour. The total standard cost of Hofburg’s product is
$14.50.
$17.00.
$22.50.
$26.50.
Scorpion Production Company planned to use 1 yard of plastic per unit budgeted at $81 a yard. However, the plastic actually cost $80 per yard. The company actually made 3,900 units, although it had planned to make only 3,300 units. Total yards used for production were 3,960. How much is the total materials variance?
$48,600 U
$4,860 U
$3,960 F
$900 U
A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month, 1,500 pounds of direct materials were purchased for $5,700. The direct materials price variance for last month was
$5,700 favorable.
$300 favorable.
$150 favorable.
$300 unfavorable.
The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11,200 gallons of direct materials that actually cost $42,400 were used to produce 6,000 units of product. The direct materials quantity variance for last month was
$3,200 favorable.
$2,400 favorable.
$3,200 unfavorable.
$5,600 unfavorable.
The total overhead variance is the difference between the
actual overhead costs and overhead costs applied based on standard hours allowed.
actual overhead costs and overhead costs applied based on actual hours.
overhead costs applied based on actual hours and overhead costs applied based on standard hours allowed.
the actual overhead costs and the standard direct labor costs.
An unfavorable labor quantity variance may be caused by
paying workers higher wages than expected.
misallocation of workers.
worker fatigue or carelessness.
higher pay rates mandated by union contracts.
The formula for the direct materials price variance is
(AP × SQ) – (SP × SQ)
(AP × AQ) – (SP × AQ)
(AP × AQ) – (SP × SQ)
(AP × SQ) – (AP × SQ)
A standard cost is a basis for comparison of actual costs against planned costs. The types of standard that may be most effective for control purposes
remain unchanged for successive accounting periods.
contain reasonable allowances for operational inefficiencies.
are expected to be achieved under any circumstances.
contain no allowances for normal loss, waste and machine downtime.
Flexible budgets are used to show
perfect performance under perfect conditions.
revised expected costs and revenues as a result of changes in activity levels.
the impact of the removal of ‘padding’ from operational budgets.
changes to budget targets following poor performance.
Direct materials variances may be analysed into
price and usage variances.
price and productivity variances.
usage and efficiency variances.
efficiency and price variances.
Variance analysis is used to compare planned and actual performance. Which of the following is NOT a reason for the occurrence of variances?
the use of standards that are out of date
operations being out of control
measurement errors
actual performance being the same as standard performance
Direct labour variances may be analysed into
usage and price variances.
usage and rate variances.
efficiency and price variances.
efficiency and rate variances.
Which of the following may be the likely reason for an adverse materials variance?
employment of higher skilled operators
overestimated materials costs used in the standards
price reductions and reduced wastage
increased waste and price increases
Standard materials costs for April are 1,000 kg x RM10 per kg Actual materials costs for April are 1,500 kg x RM8 per kg
Price variance= (Actual price- Standard price) x Actual quantity
RM2,000 unfavourable
RM3,000 favourable
RM3,000 unfavourable
RM2,000 favourable
Standard materials costs for April are 1,000 kg x RM10 per kg Actual materials costs for April are 1,500 kg x RM8 per kg
The materials usage variance is
Material usage variance
= (Actual quantity used x Standard price) -
(Standard quantity x Standard price)
RM5,000 favourable
RM4,000 Unfavourable
RM5,000 unfavourable
RM4,000 Favourable
Sistem pembebanan biaya dimana terdapat standar biaya yang telah ditetapkan terlebih dahulu di awal periode dikenal dengan
Sistem biaya Standar
Sistem pembebanan
Sistem periodik
Sistem perpetual
PT H memproduksi selendang dari kain sutra. PT H menggunakan sistem standar biaya yaitu 1 buah selendang membutuhkan 2 meter kain dan 1 meter kain seharga satu juta rupiah. Pernyataan yang tepat adalah
standar kuantitas = 2 meter per unit
standar rate = 1 juta rupiah per meter kain
standar rate = 500 ribu rupiah per meter kain
standar kuantitas = 500 ribu per unit
Dalam standar biaya produksi, varian adalah
perbedaan harga antar suplier
perbedaan kuantitas antara 1 jenis produk dengan produk lain
perbedaan antara jumlah standar biaya dengan jumlah biaya aktual
perbedaan antara biaya produksi dengan biaya penjualan
